Guides

Short answers about super on contractor payments under Payday Super, with ATO sources.

• Do you have to pay super on contractor payments in Australia?
  Yes, if the contractor is paid mainly for their labour: the ATO treats them as an employee for super, even with an ABN, and super is 12% of the labour part of their invoice.
• How to track contractor super in Xero without payroll
  Keep one row for each contractor payment: the date you paid, the amount without GST, the labour share, 12% super on that share, and the date the super must reach the fund, which is 7 business days after you pay.
• Payday Super: the 7 business day deadline explained, with an example
  Under Payday Super, the super for a payment has to reach the fund within 7 business days after payday.

Supercue: payday super deadlines for contractor payments